How to reduce the cost of enterprise software implementation?


Enterprise software (ERP/CRM) are relatively expensive initiative. Due to the high cost, many business owners and executives sit on the fence about deciding to invest in enterprise software.

There is, therefore, value in asking the following question:

How to reduce the cost of enterprise software implementation?

The cost of implementation has three main components:

  1. Software licenses
  2. Implementation cost
  3. Managed Services (Ongoing Support)

Let us unpack these the main ones:

Software Licenses:

  • Negotiate: ERP vendors need your business. Therefore, heavy discounts are not uncommon. Do some research and get the right people involved to negotiate software licenses. Remember, if you negotiated a 40% discount on the list price, the discount is for the current and future years.
  • Be smart about your purchase decisions: Be creative in purchasing decisions. For example, you do not need 200 licenses in the first year when software is still being implemented. You also would not need software modules planned for Phase 2 and beyond. So, save money by buying a limited number of licenses for the modules you will implement within the current year.

Implementation Cost:

  • Hire an experienced integration partner: If you are in the retail business, look out to the integration partner who has implemented numerous retail implementations. The cost saving is in their knowledge and IP. So, rather than asking you what you need, they may tell you this is what 90% of retail stores of your size do.
  • Hire experienced staff: It is a massive advantage in hiring staff who has used and implemented enterprise software. During the implementation, one of the most time-consuming parts is training and explaining enterprise software key terms and terminology. So, if your middle management already has experience working with enterprise software, it is a huge advantage.

Look, there are other less important cost reduction methods. However, I chose to skip them for this post.

If you practice the points above, you can substantially reduce the cost of enterprise software.

Good luck!

Reach out if you need help!